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In an interview in the Jamaica Observer of Tuesday, September 19, 2023. The Opposition Leader Mark Golding spoke below. Our economy, as everyone knows, has become heavily dependent on tourism. It is a major contributor to the GDP and employment. It is one of the country's fastest-growing industries that directly employs 175,000 Jamaicans and generates indirect employment for another 354,000 people. Yet tourism should be contributing far more to the national economy," Golding said. "Most of the earnings from tourism never come into Jamaica. The larger hotels have adopted an enclave model where guests enjoy their entire visit by staying within the hotel or going on tours organized by the hotel. This means the benefits of the sector do not sufficiently drive the local economy, even though significant portions of taxpayer dollars are being spent on advertising Jamaica to promote the industry," he argued. Do you believe that the All-inclusive concept being referred to as the “Enclave model” has helped or hindered Jamaica’s tourism's contribution to the national economy? Discuss! Be sure to include evidence of research and it MUST include one book reference.

Question

In an interview in the Jamaica Observer of Tuesday, September 19, 2023. The Opposition Leader Mark Golding spoke below. Our economy, as everyone knows, has become heavily dependent on tourism. It is a major contributor to the GDP and employment. It is one of the country's fastest-growing industries that directly employs 175,000 Jamaicans and generates indirect employment for another 354,000 people. Yet tourism should be contributing far more to the national economy," Golding said. "Most of the earnings from tourism never come into Jamaica. The larger hotels have adopted an enclave model where guests enjoy their entire visit by staying within the hotel or going on tours organized by the hotel. This means the benefits of the sector do not sufficiently drive the local economy, even though significant portions of taxpayer dollars are being spent on advertising Jamaica to promote the industry," he argued. Do you believe that the All-inclusive concept being referred to as the “Enclave model” has helped or hindered Jamaica’s tourism's contribution to the national economy? Discuss! Be sure to include evidence of research and it MUST include one book reference.

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Solution

The "Enclave model" or the all-inclusive concept in Jamaica's tourism industry has both positive and negative impacts on the national economy. On one hand, it has helped in boosting the tourism sector by attracting a large number of tourists, providing employment opportunities, and contributing to the GDP. On the other hand, it has hindered the growth of the local economy as most of the earnings from tourism do not circulate within the country.

The all-inclusive concept has been successful in attracting tourists as it provides a hassle-free vacation experience. Tourists can enjoy their entire visit within the hotel or go on tours organized by the hotel, without worrying about additional costs. This has led to an increase in the number of tourists visiting Jamaica, thereby contributing to the GDP and providing employment opportunities. According to the World Travel & Tourism Council (WTTC), the travel and tourism sector contributed 34.7% to Jamaica's GDP in 2018.

However, the enclave model has also been criticized for its negative impact on the local economy. As stated by the Opposition Leader Mark Golding, most of the earnings from tourism do not come into Jamaica. The larger hotels, mostly foreign-owned, repatriate their profits, leaving little to circulate within the local economy. This means that the benefits of the sector do not sufficiently drive the local economy.

Moreover, the enclave model discourages tourists from exploring local businesses and attractions, thereby limiting the opportunities for local businesses to benefit from tourism. This issue is discussed in detail in the book "Tourism and Inclusive Growth in Small Island Developing States" by the Commonwealth Secretariat. The book argues that the enclave model of tourism limits the linkages between tourism and other sectors of the economy, thereby hindering inclusive growth.

In conclusion, while the all-inclusive concept has helped in boosting Jamaica's tourism sector, it has also hindered the growth of the local economy. Therefore, it is important for Jamaica to find a balance between attracting tourists and ensuring that the benefits of tourism are distributed more evenly within the country.

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